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GREEN PLAINS RENEWABLE ENERGY, INC.
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
NOTES TO CONDENSED FINANCIAL STATEMENTS – PARENT COMPANY ONLY
1. BASIS OF PRESENTATION
Green Plains Renewable Energy, Inc., the Parent Company, is a holding company that conducts substantially all of its
business operations through its subsidiaries. As specified in certain of its subsidiaries’ debt agreements, there are restrictions
on the Parent Company’s ability to obtain funds from certain of its subsidiaries through dividends, loans or advances. See
Note 10 – Debt
in the Notes to the Consolidated Financial Statements for further information. Accordingly, these condensed
financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, the Parent Company’s
investments in its consolidated subsidiaries are presented under the equity method of accounting. These parent-only financial
statements should be read in conjunction with Green Plains Renewable Energy, Inc.’s audited consolidated financial
statements included elsewhere herein.
2. COMMITMENTS AND CONTINGENCIES
Operating Leases
The Parent Company leases certain facilities under agreements that expire at various dates. For accounting purposes, rent
expense is based on a straight-line amortization of the total payments required over the lease term. The Parent Company
incurred lease expenses of $1.0 million and $1.2 million during the years ended December 31, 2011 and 2010, respectively.
Aggregate minimum lease payments under these agreements for future fiscal years are as follows (in thousands):
Year Ending December 31,
2012
$
847
2013
725
2014
751
2015
763
2016
788
Thereafter
247
Total
$
4,121
Amount
Parent Guarantees
The various operating subsidiaries of the Parent Company enter into contracts as a routine part of their business
activities. Examples of these contracts include financing and lease arrangements, commodity purchase and sale agreements,
and agreements with vendors. In certain instances, the contractual obligations of such subsidiaries are guaranteed by, or
otherwise supported by the Parent Company. As of December 31, 2011, the Parent Company had $48.9 million in guarantees
of subsidiary contracts and indebtedness.
3. LONG-TERM DEBT
Parent Company only debt is comprised of future payments related to the convertible notes issued in November 2010,
notes payable and capital leases obligations.
Scheduled long-term debt repayments are as follows (in thousands):
Year Ending December 31,
2012
$ 204
2013
1,839
2014
188
2015
90,000
2016
-
Thereafter
-
Total
$ 92,231
Amount